New Iphone Will Incorporate Gps

Apple's second generation iPhone will include a satellite positioning system, the Guardian has learned.

Speculation about the gadget has reached fever pitch ahead of tonight's announcement, but one source who claims to have seen the new iPhone told the Guardian today that the device will include a higher speed 3G connection and GPS unit.

Such a development would allow the iPhone to be used as a satellite navigation tool, as well as more accurately pinpointing a user's location for applications such as maps and internet search.

Most rumors about GPS have been dismissed in the past because it ? along with 3G ? is a voracious consumer of energy. In an attempt to offset this, the source claimed, Apple has improved battery life on the handset, although using satellite positioning remains a heavy drain on its system.

The source also said that the handset will not be smaller than the current iPhone, as previously reported. However, the current generation's metallic back will be replaced with a plain black look.

Other well-placed sources have said that the company is prepared to relent on allowing mobile phone networks to subsidize the handset in an attempt to encourage more sales, particularly in Europe.

"To make a better version available for European consumers makes sense," said John Delaney, research director with industry analyst IDC. "It's impressive to go from zero to 6 million sales in a year, but that's a drop in the ocean compared to the entire market. I think they feel a need to light a fire underneath it."

Interest over the new iPhone's features has grown ahead of today's expected launch by Apple chief executive Steve Jobs. The speech at the Worldwide Developers Conference in San Francisco will begin at 6pm British Summer Time (10am Pacific Daylight Time).